"Instead, VCs are making big bets on companies that are trying something new with social media, whether that's merging e-commerce into the social feed, shaking up the content creation process with AI video generation, or trying to build the next big social media community. In 2025, over a dozen creator economy startups pulled in at least $50 million in new funding, according to a Business Insider analysis of PitchBook data."
"More than half of the roughly $2 billion in funding from 13 creator economy rounds Business Insider reviewed went to eight startups that are building AI tools to help users speed up content creation. Some investors are wagering that generative AI will democratize the content creation process and eventually eat into the market share of creative tool kits from Adobe and ot"
Venture capital shifted away from startups narrowly serving social media influencers and toward companies combining AI, social commerce, and community tools. Roughly $2 billion flowed to creator-industry startups in 2025, with more than a dozen firms raising at least $50 million. Investors favored generative-AI content tools, social-feed e-commerce integrations, and new community platforms that change how users create, shop, and gather online. Some influencer-facing companies underperformed against growth expectations. Notable rounds included Fixated’s $62.8 million and Manychat’s $140 million, and backers expect AI to broaden content creation and challenge incumbent creative-software vendors.
Read at Business Insider
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